ABUJA, Sept 26 (Reuters) – Nigeria is in talks with the African Development Bank (AfDB) for a $1 billion loan to help cover its 2016 budget deficit, the finance minister said on Monday.

Kemi Adeosun said the loan would be concessional and carry an interest rate of 1.2 percent.

“We are talking with AfDB for a $1 billion budget deficits finance support,” Adeosun told reporters following a meeting with AfDB head Akinwumi Adesina and Nigeria’s vice president Yemi Osinbajo.

Africa’s biggest economy is in recession for the first time in more than 20 years, largely due to low price for oil, sales of which generate 70 percent of government revenues. Attacks on energy facilities in the Niger Delta have meanwhile cut crude production by around a third since the start of the year.

The OPEC member has been left struggling to fund a record 6.06 trillion naira ($18.6 billion) 2016 budget that aims to stimulate growth by tripling capital expenditure. (Writing by Alexis Akwagyiram; Editing by Catherine Evans)